Insurers are pessimistic about finding attractive investment opportunities, according to Goldman Sachs Asset Management’s (GSAM) global insurance survey.

GSAM Global Head of Insurance Asset Management Michael Siegel says respondents are the most downbeat they have been since the annual survey began four years ago.

“Insurers are concentrating on finding new investment opportunities, which are sparse because yields remain at low levels, and insurers are not anticipating a meaningful increase in rates this year,” he said.

GSAM found one-third of insurers intend to increase overall portfolio risk this year.

“Insurers believe equity asset classes will outperform credit assets and they are looking to increase allocations to less liquid, private asset classes,” Mr Siegel said.

Insurers rate the pace of US economic growth as the greatest macroeconomic risk.

Despite years of unprecedented global monetary easing, insurers are more concerned about deflation in the near term due to slow global growth and lower commodity prices.

They anticipate commodities will be among the lowest-returning asset classes this year.